Readjustment and Recovery, 1961-65
In 1961 the political tide at home began to swing to the right, as evidenced by the ascendancy of a more moderate leadership. In an effort to stabilize the economic front, for example, the party-- still under Mao's titular leadership but under the dominant influence of Liu Shaoqi, Deng Xiaoping, Chen Yun, Peng Zhen, Bo Yibo, and others--initiated a series of corrective measures. Among these measures was the reorganization of the commune system, with the result that production brigades and teams had more say in their own administrative and economic planning. To gain more effective control from the center, the CCP reestablished its six regional bureaus and initiated steps aimed at tightening party discipline and encouraging the leading party cadres to develop populist-style leadership at all levels. The efforts were prompted by the party's realization that the arrogance of party and government functionaries had engendered only public apathy. On the industrial front, much emphasis was now placed on realistic and efficient planning; ideological fervor and mass movements were no longer the controlling themes of industrial management. Production authority was restored to factory managers. Another notable emphasis after 1961 was the party's greater interest in strengthening the defense and internal security establishment. By early 1965 the country was well on its way to recovery under the direction of the party apparatus, or, to be more specific, the Central Committee's Secretariat headed by Secretary General Deng Xiaoping.
SOURCE: Area Handbook of the US Library of Congress